VeriPlan automatically tracks returns lost to investment sales loads
Many justifications for investment sales load charges might be offered by financial advisors during the sales process, but once a front-end load is charged, your diminished portfolio will ‘forget’ about the load charge for the rest of your life.
Loads become ‘phantom’ assets, which are rarely spoken of or measured subsequently, even though you may remember that you paid them in the past. (See: Can you really get free and objective investment advice, when you pay investment sales loads? and Pay less to get more)
Note that, back-end loads create more semi-visible losses. With a 2% back-end load, for example, the charge will remain visible while you retain a particular holding. However, once you sell and reinvest that asset, then the value of the back-end load will slip away. When your reduced investment funds are reinvested elsewhere, it become the same kind of phantom asset as a front-end load. Particularly, if you do this frequently over your life, the lost value could grow to be very substantial.
When you pay a front-end load, the future performance of your reduced investment portfolio may be benchmarked against some passive index, but the front-end load charges that you paid would no longer be a part of this evaluation. However, VeriPlan will not forget about the loads you have paid and will pay in the future. VeriPlan does not forget these phantom lost assets and it automatically calculates their value across your lifetime. (See: VeriPlan’s personal financial planning software helps you to understand the full lifetime costs of your excessive investment expenses)
To illustrate the possible opportunity costs of paying loads, VeriPlan projects the annual value of returns lost to sales load cost-inefficiencies, which exceed sales load charges that you consider to be reasonable. It automatically calculates what you could have been earned cumulatively, if instead you had kept, invested, and compounded these sales load charges using a more cost-efficient strategy.
Concerning how VeriPlan projects cost-inefficiencies related to sales loads, VeriPlan automatically tracks and projects load costs and capital gains taxes associated with: A) any reinvested capital gains distributions that you may receive related to the individual investments already in your current portfolio and B) any future assets that you may acquire when you have positive annual cash flow. To accomplish this VeriPlan tracks and accumulates a separate phantom asset associated with your investment load payments across your lifecycle. This phantom sales load asset is modeled like other investment cost-inefficiency assets in VeriPlan.
For reinvested capital gains distributions related to your asset holdings, VeriPlan automatically charges the same load percentage that you have paid to acquire that asset in the past. For new asset purchases, VeriPlan assesses load charges for each asset class. VeriPlan calculates the weighted average load that you have paid in the past for all holdings within each of your cash, bond / fixed income, and stock / equity financial asset classes. Then, VeriPlan uses this figure to project future load charges.
VeriPlan presents information about both your past and future sales load costs, because both are important to understand. However, sales loads that you have paid in the past represent phantom assets that are entirely gone from your portfolio, and which you cannot retrieve. Regarding sales loads that you may pay in the future, you can and should control these potential future costs.
VeriPlan Is Simply The
Best Financial Planning Software
You Can Buy!
Only $57 for a license for ALL your household PCs
… with Free Shipping of the CD within the USA
Full 30-Day, 100% Money Back Guarantee — No Questions Asked
No Support Contract Required
No Need To Buy Upgrades, Since All Parameters Are User-Changeable
VeriPlan is a Great Product, a Great Deal,
and a Great Help with Your Personal Financial Planning.
Thank You Very Much for Your Order!
Note: We mail your VeriPlan CD on the next business day after PayPal has notified us of your order. When your order ships, we will send a shipment notification email to you using the email address supplied by PayPal. VeriPlan is shipped via the USPS, and deliveries typically take 3 to 10 days to arrive.
Tags: investment portfolio
Personal Financial Planning
- California Investment S & P 500 Index Direct (SPFIX) pulls in a +8 Fund Authority Score (
The Standard & Poors 500 stock index is the most common equity index fund benchmark in the U.S. The S and P 500 tracks about 75% of publicly traded U.S. equity market asset value. The dominant issue in choosing among passively managed index mutual funds and ETF funds benchmarked against the S & P 500 [...])
- Conclusion of the Biggest Personal Finance Story of the Past 30 Years ( < <-- Go to Part 4
The Biggest Personal Finance Story of the Past 30 Years - Conclusion
This article concludes our series on the greatest personal finance story of the past thirty years. In this article, we discuss whether the dramatic growth in equity value of the financial services sector indicates that securities markets are [...])
- Commentary on How Many Mutual Funds are Needed for a Well-Diversified Portfolio (
For holding periods of many years, diversification improves dramatically, when you hold multiple actively-managed mutual funds in an investment portfolio.
In "How Many Mutual Funds Constitute a Diversified Mutual Fund Portfolio?," Professor Edward O'Neal of the University of New Hampshire at Durham tackled the important question of how much an investor could improve on diversification by [...])
- Always Completely Diversify Your Investment Portfolio (Complete portfolio diversification is always a better idea.
On average, the securities markets will not pay you to hold any skewed subset of the overall market. Doing so is just a gamble that may or may not pay off. You should not expect to be paid any more for the added risk and anxiety.
A previous article, [...])
- What are My Credit Card Contract Rights? (PIRATES OF THE CREDIT SEA - Part 2: What are my rights?
What are my rights in the situation that I summarized in my previous article: "PIRATES OF THE CREDIT SEA: My Treasure Is Taken!"? Well, the answer is very simple. I have a contractual right to get my treasure back. I also have a right [...])
- The Cost of Investment Counselors When You Pay Investment Sales Loads (How expensive is financial advisor compensation paid via sales loads?
A sales load might be the method that you prefer to compensate your broker or advisor. If your advisor is truly competent and ethical, he may be able to manage properly the inherent conflicts of interest that are associated with commissioned investment product sales. Even if [...])
- Set a Minimum Portfolio Size Threshold for Mutual Funds and ETFs (
Choose mutual funds and ETFs with a minimum economical portfolio size
If you are going to invest in actively managed funds, then you should want them to have a sufficiently large asset base to fund the necessary research.
If an active fund is too small, then fund management quality can suffer or fees could grow. Index funds [...])
- Tax-Advantaged Retirement Investing Is Good for Most People (Tax-advantaged investing is very good for most people at most times
A previous article, “The Solution - ONLY follow financial strategies that are scientific, passive, diversified, savings focused, risk controlled, low cost, and tax efficient,” suggested that individuals are much better off with a well-considered financial viewpoint. A stable set of financial beliefs can help you [...])
- The Biggest Personal Finance Story of the Past 30 Years (
The Biggest Personal Finance Story of the Past 30 Years - Part 1
What could the biggest personal finance story of three decades be?
The growth of mutual funds and ETFs? Nope.
The dot com boom and bust? Nope.
Vanishing pensions? Nope.
The not-so-high quality of mortgage bonds? Nope.
A 0% personal savings rate nationally? [...])
- Using Google Scholar to Find Financial Articles (
Using Google Scholar to Find Finance Articles
If you want to do some research about financial planning and investing by yourself, try using Google Scholar.
Be prepared for a lot of the material you find to be esoteric. Nevertheless, Google Scholar is littered with diamonds that can improve your understanding of personal finance and save you money.
- Understand the Confusing Securities Market Motion Picture (
Securities markets are usually very quick to adjust prices to reflect new information. However, this price adjustment process may take longer and be more volatile, if the new information is ambiguous.
At any point in time, market participants will already have used more or less rigorous valuation methods to judge their expected risk-adjusted value of securities. [...])
- Traditional IRA and 401k Versus Roth IRA and Roth 401k Contributions (Traditional IRA and 401k versus Roth IRA and Roth 401(k) plan contributions
Many taxpayers puzzle over whether to contribute to traditional versus Roth tax-advantaged retirement plans. For most people, contributions to traditional tax-advantaged plans will probably provide a higher net present value over their lifetimes.
Given our tax-related software modeling capabilities, The Skilled Investor has some observations [...])
- The Quality and Cost of Advice Paid by Investment Sales Loads (Can you really get free and objective investment advice, when you pay investment sales loads?
Excessive investment expenses are one of the most significant barriers to your family's lifelong financial security.
Excessive investment costs are a plague on your personal financial planning. While financial services industry sales people tell you that you need to pay more to [...])
- Investment Valuation and Securities Risk for Individual Investors (
The securities markets provide an evolving consensus of the risk-adjusted value of particular securities.
By understanding how the markets value securities, individual investors can chose more durable investment strategies
Judging the potential usefulness of different investment strategies requires some understanding of what the public securities markets really do. This article discusses how the markets price financial securities [...])
- Own Investment Mutual Funds and ETFs – Not Individual Securities (Own Investment Mutual Funds and ETFs - Not Individual Securities
Owning individual stock and bond securities is just a big waste of your valuable time and money
Individual investors tend to be terrible investment portfolio managers. Almost everyone can hire an index fund manager to do a much better job for far less time, money, risk, and [...])